Strong sales generated by a better merchandise mix and by tailoring stores to regional interests have boosted Nordstrom Inc's third-quarter profit by 75 per cent.

But the clothing retailer said profits would have been even better had it not been for increased distribution centre expenses and costs associated with a new inventory management system which alters the timing for recording merchandise markdowns.  

For the three months to 31 October, profits were $18.4 million, up from $10.5 million in the year-ago period. Revenue was up 6.8 per cent to $1.3 billion. Same-store sales rose 2.6 per cent - the sixth consecutive monthly increase.

The company has lowered its full year profit estimates from $1.20 to $1.24 a share to $1.15 to $1.19 a share.